seller blackmailing to close on contracts

gailey

Registered User
Messages
91
My sister has waited for the last two years for her house to be completed. She is buying a new build and she was supposed to close two weeks ago and pick up the keys. However on the day she was supposed to close the seller phoned her to say he would not sign house over unless she would sign a letter to say that she would not sue for the rent that she has being paying. Originally on signing contracts he agreed to pay her rent if there was a delay on completion. Her solicitor has advised her not to sign as this is blackmail. Her solicitor has sent a letter to his solictor demanding that he sign. This was two weeks ago and she has heard nothing. Her solicitor says that she will ring her as soon as she has news. My sister is tempted to sign anything to get into the house. The backrent will amount to about 10,000. She has put a lot of money into the house.ie. tiles, kitchen,flooring etc. My sister is in bits. She was hoping to be in by Christmas. She is renting a 2 bed. apartment at the moment with 3 kids and are falling over boxes. What can she do? What is the worst that can happen. Can he refuse to sell her the house? Please advise.
 
Yes, he advised her not to sign a letter waiving her right to sue for damages.Do you think she should sign a letter to this affect.
 
If the contracts are signed then the seller should be sent a 28 day notice to close
 
He agreed this in writing. It was included in original contract as even at this time there were a lot of delays and it states on original contract that he would pay backrent if there were any more delays.
 
If the contracts are signed then the seller should be sent a 28 day notice to close
What if he still refuses to sign? Can she lose the house? Can he sell to someone else. The house has increased in value since she originally bought it.
 
If the contracts are signed then he can not sell the house to someone else.
She can sue for "specific performance" just as he has the same right to force her to buy.
The contract is binding on both sides.
She should not let him off the hook even though it may be hard for her to get the rental payments from him she should not allow herself to be bullied in to signing away her rights.
 
OP:
Did you mean that she has already spent money on the property she is planning on buying? Putting down tiles etc.?

If yes, then it mirrors a Circuit Court contract law case involving Neil Prenderville ( a Radio presenter in Cork) a couple of years back, where he and his wife had spent money kitting out a house, then the developer refused to sell them the house. They sued and based on part performance, the sale of the house was ordered by the Court, despite the fact that the contracts weren't signed.

It was an unusual case and local - which is why we covered it in College.

I could see if I could dig out the reference.

It would mean getting Courts involved though.
 
But in this case the contracts have been signed so the question does not even arise.
This will not get to court because the developer would be an idiot to do that. He/She does not have a leg to stand on.
 
Yes, in this case the contracts are signed. My sister has put about 50,000 into the house already including deposit etc. The seller is a well known auctioneer who bought six houses from the plans and is supposedly suing the builder for his expenses. Her solicitor told her to sit tight and she will get keys but how long can this go on for? It has gone on long enough. My sister's mortgage cheque is sitting in the solicitors so she is waiting to close so she has fulfilled her part of the contract. A friend of the family has advised her to just move in as it is her house but obviously she does'nt want to move in with 3 kids in this way. What can she do?
 
Any further delays in closing to be highlighted as further back rent to be paid out by the seller. this should be pressure enough for the seller to close. Seller seems to be chancing arm to get out of the back rent as is is gonna lose his shirt.

For once it seems the purchaser has all the clout in one of these situations.
 
If claiming back rent is included in the contract, then by stalling, the seller will only be adding to the amount owed. Pointing that out might act as motivation to close. The issue comes in if there is a secondary agreement between the builder and the seller that the builder will reimburse the seller for expenses due to delays. If that is the case, then the seller is trying to get that back rent into his pocket, and isn't overly fussed about additional rent accruing.
 
Your sister could give the vendor an option to pay a reduced figure if he closes by a certain date, for eg if he closes within a week he need only pay 8k instead of 10k. A hefty deduction might be a good incentive for a quick closing?
 
Back
Top